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Zenon Environmental Inc. v. Canada

T-610-04

2005 FC 210, Strayer D.J.

10/2/05

11 pp.

Motion for interlocutory injunction preventing defendant from providing plaintiff's intellectual property to its competitor (Seprotech) pending trial of action--Plaintiff, defendant entering into contracts for development of Reverse Osmosis Water Purification Units (ROWPU's)--Implicit in contracts plaintiffs owning intellectual property rights in ROWPU's, but contracts granting defendant royalty-free licence to make, have made, use ROWPU's, and allowing defendant to duplicate, use, disclose for government purposes technical information delivered by contractor to defendant-- Several ROWPU'S produced--Defendant issuing sole source servicing contracts to plaintiff for some 10 years--Seprotech challenging sole source process--Following competitive request for proposals, contract issued to Seprotech--Plaintiff commencing action, seeking injunction--Serious issue raised in that difficult questions of interpretation of contracts re: licence to use intellectual property--However, no irreparable harm not remediable by damages because (1) defendant solvent, permanently fixed in jurisdiction, easy to find; (2) evidence not demonstrating how plaintiff will suffer irreparable harm in light of confidentiality agreement entered into between Seprotech, defendant (that intellectual property will only be used for purpose of service contract)--Even if justification for injunction, Crown Liability and Proceedings Act, s. 22 preventing Court from granting injunction against Crown in present action for breach of contract--Cases where injunction issued against minister, officer of Crown to restrain him/her from acting outside scope of authority under statutes, constitution distinguished--Motion dismissed--Crown Liability and Proceedings Act, R.S.C., 1985, c. C-50, s. 22 (as am. by S.C. 1990, c. 8, s. 28; 2001, c. 4, s. 46(F)).

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